Spices and Extracts Raw materials - crop/market update
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1 Visit us at Spices and Extracts Raw materials - crop/market update Spice News Paprika India: In Dharwad, Haveri, Gadag and Bagalkote districts of Karnataka state, harvesting of colour chili has started from the third week of November, Drying and grading operations are going on in the fields. Area of cultivation of colour chili in the above districts had increased by around 30% compared to last season. But the lack of rainfall during the months of August, September and October has affected the yield considerably, we estimate around 30% reduction. In Bellary, Raichur and Gulberga districts, area of cultivation went up by 10-15% and there is no major damage to the crop till date. Harvesting of chili in these districts would start from first week of February 2017, it will continue till the middle of April. Overall in Karnataka state, we are expecting around 10-15% increase in the total crop size compared to last season. Arrival of new crop into the Byadgi market has started from the end of November. Last week, around bags of chili have arrived. Oleoresin manufacturers have not started buying yet. Curry powder manufacturers and domestic traders are active. Price trend is slightly downward. We expect that the price of colour chili may fall down during the peak harvesting period from middle of January to middle of March 2017, however, it may not be drastic reduction due to the following reasons: 1. Very low carry-over stock of colour chili in the cold storages in Karnataka. 2. Expected increase in the demand of colour chili from domestic curry powder manufacturers and traders. Since the prices were very high during the last season, almost all curry powder manufacturers purchased colour chili just to meet their immediate requirements. 3. Upward price trend for both raw material and ORP in Chinese market, see our report on Chinese paprika below. Restrictions in the withdrawal of cash from bank and controlling of cash transactions in India by the Government may affect the trade of colour chili during this season, as most trade is using cash. China: In Xinjiang province, harvesting of paprika has already finished. Total crop size of paprika was around 5-10 % lower than last season due to unfavorable climatic conditions in the growing areas. Yield per Mu (1 Mu = 665 sq. mtr) has decreased to
2 kg dried paprika from kg per Mu during the last season. Price of sweet paprika with CV colour has increased to RMB per kg, from RMB per kg during the same period last season, the main reasons being: 1. Low carry-over stock of ORP in the beginning of the season 2. Increase in the demand of ORP both from export and domestic markets in China 3. Increase in the price of ORP in the domestic market in China from September, Also, quality of sweet paprika during this season was inferior to last season, colour was lower by around 10% compared to last season. Farmers in Xinjiang province who cultivated paprika during this season earned good profit, which may encourage them to expand their area for the next season. OR Paprika prices stable on the high end for high colour, low colour prices might come down by February March Black Pepper In Sri Lanka, harvesting of light berries finished, estimated crop size of black pepper light berries for this harvest season is around MT. There had been a 5% decrease in the price compared to last season. Availability of good quality black pepper light berries is very low. Next main harvesting season for light pepper would be in May- June, In Vietnam, the harvesting of light berries just started. The price of light pepper has moved down by around 15% compared to last year. Expecting slightly downward price trend. White Pepper In Vietnam and Indonesia, the price trend of white pepper is almost stable, it would follow the price trend of Black Pepper. Turmeric In Gundelpet area where most of the MFT is coming from, cultivation area has increased by around 30%, compared to last season. However, there is no rain for the last three months. According to Karnataka State Natural Disaster Monitoring Centre, turmeric growing areas in the Chamraja Nagar and Mysore districts in Karnataka state have received 80-90% lower monsoon during the period of September to November, 2016 than normal. This has affected the growth of the turmeric adversely. It may affect the curcumin content in the turmeric from this area. There is no carryover stock of extraction quality turmeric. Increase in demand for extraction quality turmeric from oleoresin manufacturers might help to increase the price.
3 In Maharashtra, area of cultivation of turmeric has increased by around 15%, compared to the last season. Climatic conditions are favorable for the crop, there is no major incidence of diseases till date. Climatic conditions in next two months are also very critical. Here also, there is no carry-over stock of kocha turmeric is almost NIL. Demand for extraction quality Kocha turmeric is high, however, no offers from any reliable traders. Next harvest would start from the beginning of February, In Tamil Nadu, area of cultivation of turmeric has increased by around 15-20%, compared to the last season. Shortage of rains in almost all turmeric growing during the period from August to November, 2016 might adversely affected the crop. But it is too early to predict the crop size for the next season. There is no incidence of disease for the plants. Next harvesting may start from the beginning of March, Lack of carryover stock of Panangali turmeric and expected increase in demand may push the prices up. In Myanmar, according to the trade sources, the area of cultivation of turmeric is almost same as last season. Carry over stock is almost NIL. The price has moved up by 20% compared to the price prevailed in the market during the last harvesting season. Next harvesting season may start from the middle of February, Harvesting of turmeric has already finished in Indonesia. Continuous raining in the growing areas during the harvesting period in August September adversely affected the crop and its quality. Price of turmeric moved up by more than 10% due to the increase in demand from oleoresin manufacturers in India. In Nigeria, harvesting of turmeric has just started. Estimated crop size is almost same as last season. The price of dried turmeric has moved up by around 15% during the last season. In Vietnam & Cambodia Area of cultivation of turmeric is almost same as last season. Next harvesting may start from the end of January Turmeric/Curcumin prices stable for the short term and may go up during long term. Heat Chili (Capsicum) In Andhra Pradesh and Telungana states, the area of cultivation of heat chili has increased by around %, compared to the last season. Performance of the chili crop is satisfactory due to the favorable climatic conditions. There is no major incidence of disease. Harvesting has just started, but the peak arrival of dried chilies to the market would be by middle of February till middle of April. For the last one month, price trend of most varieties of heat chili is downward except that of Teja. The price trend of Teja chili is stable due low carry-over stock of good quality and strong export demand from Malaysia, Indonesia, Sri Lanka, China, Bangladesh, etc. If the climatic conditions in the chili growing areas are favorable for the next four months, we are expecting 30-40% increase in the total crop size and downward price trend for the next harvesting season. Red Pepper / Chili / Oleoresin Capsicum prices downwards.
4 Ginger In Karnataka and Kerala, area of cultivation of ginger has increased by around 20% compared to the last season. Harvesting has just started and the dried ginger may arrive to the market from the middle of January. We expect stable or slightly downward price trend. In Nigeria also, harvesting of ginger has started. Price trend is slightly downward. Ginger prices downwards. Nutmeg & Mace In India, harvesting of nutmeg has already finished. Crop size was around 20% higher than normal due to favorable climatic conditions. Price trend is almost stable for the last two months. Next harvesting season may start from May, In Indonesia, the price trend is stable for the last three months. Nutmeg/Mace prices stable at the lower levels. Celery In India, harvesting of celery has almost finished. Prices are stable at the high end. Next harvest is in May Celery prices stable at high end. Coriander In India, sowing is going on in the major growing areas in Gujarat and Rajasthan. We are expecting around 20% reduction in the area of cultivation. High carry over stock of imported Bulgarian coriander still available in the market. We are expecting stable price trend for coriander till the next harvesting season. Expecting stable price trend. Fenugreek In India, crop size of fenugreek was around 40% higher than normal this year, prices moved down by more than 10%. Next harvesting season may start from the middle of March Prices stable at the lower end.
5 Cumin Sowing is going on in the cumin growing areas in India. Attractive prices prevailing in the market now is encouraging farmers to cultivate in more areas. We are expecting around 20% increase in the area of cultivation of cumin for this season compared to last. New harvest may start in March Expecting stable price trend for cumin. All queries / inquiries may please be directed to info@akay-group.com The information contained herein is to our knowledge true and correct, and presented in good faith. However, no warranty, guarantee or freedom from patent infringement is implied or inferred. This information is offered solely for your consideration and verification, and may not be duplicated or used in any other form without akay s prior written consent Register today! February 12-14, 2017 Kovalam, India.
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